A reduction in force would not only result in laying off employees but also in the termination of their roles, leading to another significant disruption in the federal workforce, which has already faced extensive cuts.
WASHINGTON D.C., DC — The White House is telling agencies to prepare large-scale firings of federal workers if the government shuts down next week.
A memo issued on Wednesday night by the Office of Management and Budget indicated that agencies should contemplate a reduction in force for federally funded programs set to lose funding next week, which lack alternative sources and do not align with the President’s priorities. This represents a more assertive approach than previous shutdowns, where non-essential federal workers were furloughed but resumed their duties once government funding was approved by Congress.
A reduction in force would not only lay off employees but erase their positions, leading to significant disruption in a federal workforce that has already been through major reductions this year due to initiatives from the Department of Government Efficiency and the Trump administration.
After any potential government shutdown concludes, agencies will be required to adjust their plans for reducing the workforce “as necessary to maintain the minimum number of employees required for carrying out statutory duties,” as outlined in the memo first reported by Politico.
This directive from OMB notably heightens the stakes of a potential government shutdown next week and increases the pressure on Senate Minority Leader Chuck Schumer and House Minority Leader Hakeem Jeffries. They have maintained strong Democratic opposition against a straightforward funding measure advocated by President Donald Trump and congressional Republicans, which aims to sustain government operations for an additional seven weeks.
OMB mentioned that it conducted its initial planning call with other federal agencies earlier in the week to strategize for a shutdown. The budget office is key in managing federal shutdowns, especially planning them in advance. Previous budget offices have released shutdown contingency plans on their websites — detailing which agency employees would remain active and which would be furloughed during a shutdown — but this particular office has not.
The memo noted that congressional Democrats are refusing to support a clean government funding bill “due to their partisan demands,” which include an extension of enhanced health insurance subsidies set to expire at the end of the year, plus a reversal of Medicaid cuts that were included in Republicans’ big tax and spending law.
“As such, it has never been more important for the Administration to be prepared for a shutdown if the Democrats choose to pursue one,” the memo reads, which also notes that the GOP’s signature law, a major tax and border spending package, gives “ample resources to ensure that many core Trump Administration priorities will continue uninterrupted.”
OMB noted that it had asked all agencies to submit their plans in case of a government shutdown by Aug. 1.
“OMB has received many, but not all, of your submissions,” it added. “Please send us your updated lapse plans ASAP.”
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